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Chapter Perspective
1
Organization is the Foundation of IMC
 Since
there are so many partners involved in managing
brand relationships, integration is an organizational
challenge.
 IMC often involves organizational restructuring.
 A company cannot build relationships externally until it
builds them internally.
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Overview of the
Marketing Communication Business
2
 Basic
players in today’s marketplace:
Organizations
 Media
 Agencies

 This
creates a “golden triangle,” where customers are
at the center of the planning.
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Golden Triangle
3
Figure 3-1, p.83
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The Bigger Picture of the
Marketing Communication Players
4
Figure 3-2, p.83
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Roles and Positions
5
 In
larger companies, where there are multiple brands or
product offerings, there may be specific brand managers
or product managers.
 Frequently there is tension between sales and marketing.
 Larger companies often have a separate department to
handle the marketing communication responsibilities,
which is often known as marketing services.
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Cross-functional
Planning and Management
6
A basic principle of IMC: Critical processes that affect
customer relationships involve more than one
department.
Cross-functional planning involves many departments
and functions.
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Benefit of cross-functional IMC team:
7
 Ensure
consistency in all brand messages.
 Make sure the big creative idea is integrated in all
messages.
 Coordinate the timing and scheduling of the various
MC programs.
 Help employees become less myopic.
Primary purpose: To improve internal communication.
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Agency Partners
8
In general, the larger the marketing communications
budget, the more marketing communication agencies a
company will hire.
Types of MC specialist agencies (most common):
 Advertising
 Public Relations
 Direct Marketing
 Sales Promotion
 Packaging/Corporate Identity
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Types of Agency Services
9
The largest number and type of MC agencies are ad agencies.
A full-service agency provides all or most of the services
needed in its area of specialization.
Key people within an advertising agency include:
 Account managers
 Copywriters
 Art directors
 Creative directors
 Producers
 Traffic managers
 Account planners
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Media Buying Services
10
Media buying services specialize in buying time and space,
that is, placing brand messages in the media.
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How Agencies Specialize
11
Many companies hire MC agencies that specialize in an
industry or product category.
Different types of specialty agencies include:
 Business-to-Business Specialists
 Ethnic Agencies
 High-Tech Agencies
 IMC Agencies
 In-House Agencies
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Public Relation Firms
12
 Like
advertising, public relation firms may also specialize
in certain industries.
 Main function of public relations firm is to counsel
companies on how to better manage their relationships
with their stakeholders.
 Unlike advertising agencies, most public relation firms do
not have a creative or media department.
 One of the most valuable attributes a public relations firm
can have is a good relationship with the press.
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Direct-response Agencies
13
Direct-response agencies are structured like advertising
agencies. They deal with not only the mass media, but
also mail, email and telemarketing services.
Some agencies may also have specialists who analyze and
rent databases.
Support services include:
 Data shops
 List Brokers
 Printers
 Letter shops
 Creative services
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Sales Promotion Agencies
14
Companies that do a lot of promotions, such as premium
offers, sweepstakes, in-store special displays, etc. use
sales promotion agencies.
These agencies are made up of three groups:
 Account service managers
 Creatives
 Production people
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MC Suppliers
15
MC Suppliers are specialists who help MC agencies
actually produce their work.
These suppliers include:
 Creative boutiques
 Freelancers
 Production Houses
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Agency Compensation
16
Methods of payment vary by types of MC agency and by
individual clients.
Methods include:
 Commission
 Fee or Retainer
 Markups
 Performance-based compensation
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Media Partners
17
Media partners are an essential set of partners.
There have been several changes in the media and in how
companies work with agencies and their clients:
 New communication technologies
 Increase in media alternatives
 Media companies recognize how they can add value to
their delivery systems by expanding their audience
information
 Large media conglomerates
 More fragmentation
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Agency/Client Relationship
18
 The
agency/client relationship is critical to the successful
functional of an IMC program.
 Client trust can significantly affect the quality of its
agency’s work, the smoothness of the working
relationship, and the effectiveness of an IMC program.
 A client’s attitude toward its agency – how it sees its
agency – often determines the level of trust and respect.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.